Californian physicians have some of the lowest cost medical malpractice insurance in the country, as a result of MICRA. Though many MD’s feel they pay a fortune, this is primarily due to the fact that they earn less in CA than MD’s who practice in other states.
The Medical Injury Compensation Reform Act (MICRA), the 1975 California law, that helps control healthcare costs, is safe for another year, at least on the legislative front. The deadline to introduce legislation in California this year has passed, so barring a last minute “deal,” MICRA will not be under attack in 2010. However, there are currently at least three cases challenging the MICRA cap on noneconomic damages in the California courts. NORCAL Mutual is encouraged by the recent Van Buren v. Evans decision in the Fresno Appellate Court that upheld the cap.
The relatively favorable climate in California is in stark contrast to the dismal situation in Georgia and Illinois, where the courts recently tossed out caps on noneconomic damages. The Georgia Supreme Court held that the cap violated the Georgia State Constitution’s equal protection clause, while the Illinois Supreme Court ruled that the cap ran afoul of the state constitution’s guarantee of right to trial by a jury.
These setbacks to tort reform in other states remind us that we must remain vigilant in defending MICRA in California. As NORCAL Mutual Board Chair, David Holley, MD, recently told executives of our endorsing medical societies, “Organized medicine is doing a good job of defending MICRA in California, but we can’t become complacent. The threats are ongoing and real. NORCAL Mutual is actively involved with several broad-based coalitions to augment the efforts of organized medicine in defending MICRA in forums spanning the legislature, courts and public opinion.”
HCP National Insurance is a national medical malpractice and medical professional liability broker appointed by Norcal. HCP National’s Medical Malpractice Insurance brokerage is located in Orange County, CA.
[Credit: NORCAL Mutual Insurance Company, Spring 2010 Issue]
